I am lost with this Contract Law Question

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Report Thread starter 2 years ago
On Tuesday morning, Arrow Ltd offers to sell 10 tonnes of wheat flour to Bow Ltd at £500 per tonne. The offer to Bow Ltd states: ‘Please telephone or email an acceptance by 5.00 p.m. today. Delivery will take place on Friday’.
Bow Ltd faxes an acceptance at 12 noon, the fax machine informing Bow Ltd’s clerk that the message has been properly relayed to Arrow Ltd. Unfortunately, the fax machine of Arrow Ltd has run out of ink so that acceptance is not received. In addition, as Bow Ltd believes that a firm contract exists, it enters into a binding contract with Cupcake Ltd to produce cakes and breads for supermarket chains nationwide, using the anticipated delivery of wheat flour on Friday.
Advise Bow Ltd whether there is a binding contract with Arrow Ltd.
Would your advice differ in the following circumstances?
(a) Bow Ltd emailed a withdrawal of its acceptance before 5:00 p.m., but the email was accidentally deleted by an Arrow employee.

In regards to question A, under English Law withdrawal of acceptance is not valid.

However, under the postal rule, it could be circumvent under some circumstances (ie Holwell Securities v Hughes), when the offeror require a notice of acceptance in order for the acceptance to be valid

My question is can this rule be circumvent under instananeous mode of communication as well?

I apologize for this lenghty question and the reason i am asking it here as i cant seem to find anything about withdrawal of acceptance under english law as compared to other jurisdiction..
Last edited by Sundaymorningtim; 2 years ago

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